Opalesque Industry Updates - BlackRock, Inc. today reported fourth quarter 2009 net income1 of $256 million, up $204 million compared to 2008. The Barclays Global Investors (“BGI”) transaction closed on December 1, 2009 and contributed $94 million to fourth quarter net income, more than offset by a $108 million after-tax expense associated with BGI transaction and integration costs. Operating income was $389 million and non-operating income, net of non-controlling interests, was $17 million. The operating margin was 25.2%, which included the impact of $152 million of pre-tax BGI transaction and integration costs.|
BlackRock’s results reflect the acquisition of BGI, continued positive business momentum, net asset growth and improvements in the external market environment. Fourth quarter net income, as adjusted, was $2.39 per diluted common share or $379 million, up more than three and a half times compared to fourth quarter 2008 diluted EPS of $0.66 and up 14% from the third quarter. Net income, as adjusted, for the full year 2009 was $1,021 million, an increase of 19% compared to 2008.
Revenue was $1,544 million, up 45% compared to fourth quarter 2008 and 35% compared to third quarter 2009. Fourth quarter 2009 revenue included $278 million of base fees associated with the $1.85 trillion of acquired BGI assets under management (“AUM”), revenue associated with $62.6 billion of net new business and net market appreciation and $125 million of combined firm performance fees.
Fourth quarter 2009 included as-adjusted operating income of $2.34 per diluted share and as-adjusted net non-operating income of $0.05 per diluted share. Operating income, as adjusted, of $561 million improved $191 million or 52% compared to 2008 and $161 million or 40% compared to the third quarter, explained partially by $141 million of operating income resulting from the BGI acquisition. The operating margin, as adjusted, for fourth quarter 2009 remained strong at 39.7% reflecting revenue growth and continued cost control. The 2009 compensation to revenue ratio was 35%, consistent with 2008 and 2007, excluding integration costs, LTIP and market valuation changes on deferred compensation plans.
Fourth quarter 2009 net non-operating income, as adjusted, of $13 million compares to a non-operating loss of $270 million in 2008 and non-operating income of $52 million in the third quarter. Fourth quarter non-operating income included interest expense on our $2.5 billion long-term note issuances on December 10th... Full press release: Source